Hedge funds will have to wait a little longer to begin peddling their wares like most other companies.

In April, Congress passed and President Barack Obama signed the JOBS Act. Among that law's many provisions was the elimination of an 80-year-old rule that had prevented hedge funds from advertising.

But while the law gave the Securities and Exchange Commission 90 days to write new rules to implement that provision, the regulator will miss the deadline, SEC Chairman Mary Schapiro will say tomorrow.

Schapiro will tell a House of Representatives panel that the timelines enshrined in the law "are not achievable."

"The 90-day deadline does not provide a realistic timeframe for the drafting of the new rule, the preparation of an accompanying economic analysis, the proper review by the commission, and an opportunity for public input," Schapiro said in prepared testimony.

Schapiro did say that the SEC has "made significant progress" on the new rule, adding that she thinks the regulator "will be in a position to act on a staff proposal in the very near future."

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.